The Databook, which is a study of the size of the offshore investment market, suggested that investors’ choice of deposit destination is related to the proximity of investment centres to their home markets, announcing that European investors account for 84% of all deposits in Dublin and 72% in the Isle of Man, whilst US investors represent 62% of all deposits in the Bahamas.
However, in a statement, the BFSB responded by explaining that although the Bahamas is a well-regarded booking centre for US deposits ‘this does not necessarily mean these deposits are from US individuals who might be impacted by initiatives in the United States’. The Board went on to add that:
‘Generally, Bahamian financial institutions have a diversified international base of business.’
Furthermore, with regard to claims in the Offshore Financial Services Databook that deposit levels in the Bahamas and the Netherland Antilles are set to contract over the 2003-04 period, the BFSB announced that:
‘A policy decision by the Bahamas to eliminate managed banks and in the process further instill a ‘mind and management’ operating culture within all financial institutions doing business in the country has likely led to some erosion in deposits…The Central Bank foreshadowed an impact on the deposit base with the introduction of this policy.’
by Carla Johnson, Investors Offshore.com
